This insurer beat quarterly estimates and is buying back shares.
Lincoln Financial (LNC)
from AlphaProfit Sector Investors’ Newsletter
We are iterating our recommendation on Lincoln Financial (LNC) shares with new price targets after the one on April 12 exited with a 7% gain following the insurer’s robust first quarter earnings report.
Lincoln’s return on equity rose to 12% after operating income grew 28% from the year-ago period. The company is on-track to buy back over $500 million in shares in 2014 after already repurchasing $150 million of stock.
Lincoln’s annuities segment should continue to flourish in a normal stock market milieu. Its shares interest value investors. They trade at a 9% discount to book value and at 8.9X forward EPS. (Next earnings: Late July)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, May 2014